Charles Leaver – Lessons Learned From The Target Cyber Attack. Slow Recovery And Financial Losses

By Charles Leaver CEO Ziften

 

After Target was breached it took several months for the business to recover and be offered a clean bill of health.

Continuous Recovery Effort And Reports Of Financial Loss

It was a significant story when Target struggled with its data breach. Like all significant news releases it faded into the background as far as being covered nationally, however as far as the company is concerned it was still a significant top priority. The store lowered its revenue forecasts for 2014 once again, which implies that the business had actually underestimated the impact of the malicious attack that they were exposed to, according CNN Money.

The decrease in earnings was actually significant and the company wound up declaring 62% less profits. In addition to this they needed to pay $111 million as a direct result of the breach in the second fiscal quarter and all of this adds up to a business that was at one time robust now looking a shadow of its previous self because of a cyber attack.

As the fallout continued, the scale of the cyber attack began to emerge. Data for around 110 million people was jeopardized, and taken credit card data was experienced by 40 million of those people. As news got out about the breach, the business made some major changes which included the implementation of more stringent cyber security steps and the change out of the system admin. Long standing CEO, Gregg Steinhafel, also resigned. However it is not deemed enough to reduce the impact of the attack. The stakeholders of Target are soaking up the negative results of the attack as much as the business itself according to Brian Sozzi of Belus Capital.

In an email to CNN Money Sozzi said “Target simply dropped an epic full year earnings warning onto the heads of its remaining shareholders.” “Target has offered financiers ZERO reason to be encouraged that a worldwide turn-around is covertly emerging.”

Target Offers A Lesson For All Organizations About Improved Pre-emptive Procedures

No matter how proactive a company is to a cyber attack, there is no assurance that the recovery time will be quicker. The bottom line is that a data breach is bad news for any organization no matter how you call it or aim to repair it. Preventative procedures are the very best way forward and you have to take actions to make sure an attack does not happen to your organization in the first place. Making use of endpoint threat detection systems can have a substantial role in preserving strong defenses for any organization that opts to implement it.